Any type of energy is used by consumers after undergoing through four to five processes, that is, generation or collection of energy, transportation of the energy, storage, transformation of the energy into a type easy to use, and usage. There is a loss of energy by a few % to tens of % in every interval between the above processes, and consumers have to accept the loss. As described above, energy is gradually changed into a low quality state (heat of low temperature) due to an entropy law and then is dispersed to an outer space, which causes environmental contamination, as well as loss of energy.
There is a loss in electric energy between generation and transformation of the electric energy and while the electric energy is moved from one spatial point to another spatial point, and it is very important to reduce this loss to reduce costs and protect the environment.